Create Payment Plans
Incentive compensation managers and analysts create payment plans in the Participant Assignments work area to provide and recover participant draw payments against actual earnings.
Use payment plans to specify when and how much to pay and at what frequency. Prevent negative payments by using a zero minimum amount.
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On the Create Payment Plan page, select the payment plan category.
The Payment Information page or tab for plan components has the same field. Payment processing applies the draw and cap configured in the payment plan to those plan components with the same category selected. Create and edit plan components in the Compensation Plans work area.
Set up multiple payment plans for a participant during a specific time period, as long as the payment plans have different categories.
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Enter the flat minimum amount to pay the participant.
Payment processing calculates the difference between the draw and the actual earnings amount and automatically creates a payment adjustment, recoverable or nonrecoverable, as required.
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Optionally, select when to end the draw, such as after 3, 6, 9, or 12 months.
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Optionally, enter a maximum payment, or cap.
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Specify whether to carry forward the maximum.
If you select Yes, then the payment processing issues a negative adjustment to level the final payment to the maximum amount. It also applies the adjustment to future earnings if the participant earns less than the maximum set on the payment plan.
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Specify whether to recover the minimum, or draw, payment.
If you select Yes, then the payment processing recovers the minimum against all earnings over the minimum amount. Also, specify whether to start recovery immediately or delay it. If you delay recovery, then you can specify whether to start and end recovery after 3, 6, 9, or 12 months.
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Assign participants using roles and direct assignment.